Nudging: Within the Context of Place Marketing

Abstract: Sergels torg in Stockholm, Sweden, and the surrounding areas have possibly negative associations in the minds of individuals. To then influence and change a negative mindset related to a place can be a difficult task for real estate managers. This thesis report has studied whether place marketing and nudging could and has been applied by two large real estate owners regarding the ongoing place development of Sergels torg. Since certain similarities between place marketing and nudging has been determined, the problem within the report has been concluded to how the two concepts can relate. Therefore, the aim of the report has been to examine if place marketing can be gradated when combining theory behind nudging. Place marketing and nudging have not previously been studied as integrated concepts, resulting in the formulation of new aspects around these. In this study, the strategic market planning process as a theoretical model has been used to define the term place marketing. It has been used by means of deduction to investigate how it could be used in place development and how this model could contribute to an individual’s changed mindset to places. Another model has been used in the study to define which management control measures are included in nudging. Nudging, as a term, was named in 2008 and aims to nudge individuals in a desirable direction in which they otherwise would not have taken, without including incentives nor restrictions. This study has consisted of interviews with experienced professionals from two real estate owners involved in the development of Sergels torg. The conclusion that has been drawn from the interview study is that the respondents have been familiar with and in general used place marketing when developing the area surrounding Sergels torg. On the other hand, it was less than half of the respondents who were familiar with the concept of nudging, despite this, they have to a certain extent used some of the management control measures falling within the scope of nudging. By analyzing the thesis’ empirics and theory it has been concluded that if nudging is implemented in place marketing, several advantages can be drawn, such as increasing turnouts at places and a positive outlook in individuals. Thus, making it possible to increase the social and monetary sustainability in urban development.  Concluding, there are challenges regarding combining the two concepts place marketing and nudging. The challenge could briefly be described as how it previously has been defined and which interventions go under a nudge. Finally, the thesis presents a suggestion of a recommendation on how to implement nudging in the strategic market planning process.